What is a 1099C?

What is the name of your state?NC
I have a collection agency harrassing me to pay a loan they say I co-signed in 3/2000. I have not seen any proof of this. I have ask them to send documents showing where I co-signed, and all they say to me is that I will see these documents in court when they sue me. I have reseached SOL in my state and I'm pretty sure it has ran out. The last time they called I told them I knew the SOL had ran out. So now they said that they will be filing a 1099C (earned income) on me. Can anyone explain what a 1099C is to me?

[Ladynred]

Big threat from small people.
A 1099-C is called 'cancellation of debt' income and it is reportable as income on your tax return. However, if you can prove insolvency, then you do NOT have to report it as income.

The expiration of the SOL is NOT cancellation of the debt - all it means is that they lose the legal means to enforce collection of the debt.

Stop talking on the phone and send these bozo's a cease and desist letter telling them to get bent, the debt is time-barred. However, are you SURE its past the SOL ?? When did this loan go into default ??

As for your request for documentation - again, if its not in writing, it didn't happen. You're entitled to demand validation of the debt, but making that demand on the phone is like spitting into the wind.

The last activity on this account was 7/2000. It belonged to a friend of mine, who filed bankruptcy on it in 9/2000. I have not heard a word about this until 5/2004, when a collection agency called me asking for $2,300. I had also ask them for proof, but never received anything. This collection agency gave it back to the original owners, who in turn sold it to these ya-hoos. I have sent them 3 certified letters. (Proof of signature letter),(SOL letter) and (one letter from the manager of citifinancial (original owner) stating to these people that he cannot link me to this loan.) But of course they are still persistant. They called me and ask if I wanted to settle. Of course I said no, that's when the woman on the phone said even though we can't sue you, we can file a 1099C on you. I in turn told her not to ever call me back again. Now this is on my credit report. What can I do now?

[Ladynred]

Well, you can try what they call the 1-2 punch ([url]www.creditboards.com[/url]). You send the ya-hoos a validation demand letter. If they don't cough up the info, AND mark the account as 'in dispute' - which they must do - then you dispute the tradeline with the CRA's. If they verify with the CRA's before they validate to you, then they're playing games - if they can't prove it to you, HOW do they prove it to the CRA's they're reporting to ?? Read all about it on creditboards, they explain it more fully.